HRIS or human resource information system refers to an online tech solution or software used for multiple tasks such as data entry, data tracking, and data management needs of the human resources, payroll, and accounting functions within an organization.

It provides a centralized repository of employee data that the human resource management professionals need for completing core human resource processes.

Also known as a human resource management information system (HRMIS) sometimes, HRIS is essentially an intersection of human resources and technology through HR software. It aims to perform all HR activities and processes electronically and effortlessly.

HRIS can also be considered as a smart database of employee information. The interaction of the data, the reporting capabilities and the processes that can be performed with HRIS make the data stored in the system more accessible and usable.

An HRIS software essentially refers to the seamless integration of HR activities and information technology. It is a system that enables data entry, data tracking and management for human resources, payroll, and accounting processes.
HRIS systems are primarily designed to automate and streamline the key aspects of HRM, including payroll, attendance, and benefits management.

There are various types of HRIS software available today including traditional, on-premises software, which can be installed and utilized on individual computers and cloud-based HRIS software which is more prevalent mainly because of its advanced features and accessibility.

Cloud-based HRIS software takes the technology a step further and is mobile compatible, which means employees can access all the important information not only from their desktops but from anywhere and at any time on their smartphones and tablets.

Because an HRIS encompasses multiple functionalities for HR, all these separate functionalities are part of the HRIS system. Among these include –

Core HR

HRIS core offering includes a database that allows organizations to store employee information. HR professionals can input all personnel data into the system which if based on cloud can be accessed from anywhere, round the clock. Types of data that HR professionals collect in the database include compensation history, emergency contact information, and performance review.

Leave, Time & Attendance Management

Activities like leave management, time and attendance management can be highly time consuming. An HRIS software allows employees to input their own hours worked and allows managers to immediately verify vacation requests, and the data is directly fed to the payroll. Attendance management also improve the HR department’s ability to track punctuality and attendance.

Payroll Systems

Payroll automates the pay process of employees. In most cases, contractual data is often entered into this system, sometimes combined with attendance and time data, to create payment orders at the end of the month.

Applicant Tracking System (ATS)

ATS software handles the company’s overall recruiting needs. It tracks candidate information and resumes, allows recruiters to match job openings to suitable candidates from the application pool, and assists in guiding the hiring process.

Succession Planning

Another key functional component of an HRIS system is creating a talent pipeline and having replacements available for main roles in the organisation.

HRIS plays an instrumental role in human resource management. It adds value to your organization in several ways, some of which are encapsulated below:

HRIS makes up-to-date human resource information readily accessible over a centralized database. As a result, it overcomes any issue related to data silo formation or loss in data fidelity across teams. Furthermore, this data may be updated in real-time, which ensures data consistency throughout the organization.

HRIS leaves room for automation, which takes care of any redundancies. Therefore, your employees and HR teams can be more hands-on while tackling high priority items of work. The otherwise time and resource-intensive activities, such as leave management, payroll management, and employee onboarding and training can be a lot easier with HRIS.

The scalability of HRIS solutions is one of its greatest features. Even as your workforce grows exponentially, managing and catering to its needs become convenient through HRIS. Additionally, it reduces your need for large teams of HR professionals, which imminently cuts down cost in the form of salaries.

To be successful, companies must establish and outline policies relating to recruitment, onboarding, training, termination, leaves, overtime, etc. However, implementing these and keeping track of all variables is impossible when done manually. HRIS introduces a layer of structural integrity that ensures that the rules and benefits are applicable to all employees.

In addition to internal compliance, businesses must also maintain adherence to local and state laws. It keeps you out of any legal troubles and ensures that you are not slapped with liabilities like fines and penalties.

Also Read: What is a SaaS Business Model & Why It is time to think Cloud HR!

The features of your preferred HRIS may vary from business to business. However, here are a few core features and functionalities that are relevant to all companies:

HRIS Mobile App is a full client/server tech solution that can be used from a smartphone or any other mobile device. It allows human resources professionals in an organization to interact with employees and the HR system whenever and wherever they are.

HRIS mobile app also allows employees to check any HR information, whether they are at the office or outside. It makes excellent use of the BYOD experience as users can get notifications and information quicker.

Here are some of the uses of HRIS mobile app –

• Allows direct interface with the employee
• A fully secure solution that offers configuration of permissions to access the application from within or outside
• Encourages BYOD behaviour in the enterprise and allows you to reach your employees directly on their mobile devices
• Allows employees to check all HR related information easily from mobile

Quite often, one may have heard of the terms Human Resource Management System (HRMS), Human Capital Management (HCM), and Human Resource Information System (HRIS) being used interchangeably.

And while the three are not all the same, there is no well-defined industry definition that can differentiate between them all. You can think of these as Russian dolls with one being a subset of the other, and so on.

In terms of its core functionalities, the difference between HRMS, HCM, and HRIS has been illustrated below:

As such, the lines between the three appear blurred due to the overlaps, but each serves a defined set of purposes. Hence, it eventually boils down to your company requirements.

The importance of HRIS captures an overview of the benefits that it grants to any business. Here is a snapshot of the organizational benefits of investing in HRIS solutions:

• Improved organizational structure
• Higher employee data availability and accuracy
• Fewer labor-intensive tasks, which reduce the overall costs
• Greater operational efficiency and higher productivity
• HR teams can focus on more critical items, such as talent management, employee retention, etc.
• Sets an employee-friendly work culture that motivates them to work harder
• Saves time, money, and resources